Cozen O’Connor Public Strategies (CPS), the bipartisan government relations and communications affiliate of international law firm Cozen O’Connor, today announced the addition of Donovan W. Pepper as principal and director of national strategic partnerships.
With less than two weeks until Election Day, Virginia stands at a pivotal crossroads — with control of each statewide office and the House of Delegates on the line against the backdrop of the ongoing federal government shutdown. As one of only two states holding statewide elections this year, Virginia’s results will draw national interest as it serves as a bellwether for the 2026 midterms.
The choices voters make will determine not only who governs, but how the Commonwealth navigates shifting economic tides and federal headwinds heading into the 2026 Regular Session of the General Assembly.
With Governor Youngkin nearing the end of his four-year term, Virginians will soon elect a new Governor, Lieutenant Governor, and Attorney General, along with all 100 members of the House of Delegates.
The gubernatorial race features former Representative Abigail Spanberger (D) and current Lieutenant Governor Winsome Earle-Sears (R), who faced off in their only televised debate two weeks ago at Norfolk State University. In the Lieutenant Governor’s race, conservative radio host John Reid (R) faces Senator Ghazala Hashmi (D) in an open contest to succeed Earle-Sears. In the Attorney General’s race, incumbent Jason Miyares (R) debated former Delegate Jay Jones (D) on October 16 at the University of Richmond.
While Democrats currently hold slim majorities in both the House of Delegates and the Senate, only the House seats are up for grabs this year. As a result, this year’s statewide and House races will decide whether Virginia enters 2026 under unified Democratic control or a divided government.
Virginia entered 2025 with strong reserves and a disciplined budget posture. But as federal spending softens and job growth slows, policymakers are shifting from managing surpluses to managing risk.
Looming over the election is the Commonwealth’s unique reliance on federal spending. The Joint Emergency Committee on the Impacts of Federal Workforce and Funding Reductions, which has met periodically throughout this year and most recently in September, highlighted that 24% of Virginia’s economy depends on federal dollars — the highest share in the nation. Federal civilian workers make up 10% of total state employment, second only to Maryland.
As a result, any reduction in federal workforce or spending will have a ripple effect on state and local budgets. Education funding is a key concern: the U.S. House has proposed 27% cuts to K–12 aid, while the Senate would maintain current levels — a difference with direct implications for Virginia’s school divisions.
Regardless of how the election plays out, fiscal restraint will likely be the defining tone of the 2026 regular session.
Virginia’s minimum wage will rise to $12.77 per hour on January 1, 2026, as announced by the Department of Labor and Industry over the summer, which takes into account increases to the consumer price index. Earlier this year, the Democratic-led General Assembly passed a plan to raise it to $15 by 2027, which Governor Glenn Youngkin vetoed, citing inflation and competitiveness concerns. Democratic nominee Spanberger has stated that she would support raising the minimum wage to $15 if elected, while Earle-Sears said she would support maintaining the current inflation-based adjustments.
The Commonwealth’s long-standing right-to-work law remains another flashpoint in the gubernatorial race. Spanberger has stated that she does not support a full repeal of the law but would support “an array of policy initiatives that would meaningfully impact the lives of working Virginians,” while Earle-Sears has unequivocally stated that she would vote against any repeal that would weaken Virginia’s right-to-work status, stating that she supports “employees choosing what works best for them.”
Healthcare continues to be a major political and fiscal issue, especially as federal funding remains uncertain. Virginia relies on federal dollars for a significant portion of Medicaid spending, and any cuts could directly impact state budgets, hospital funding, and low-income residents.
The ongoing federal government shutdown and the Big Beautiful Bill adds to the uncertainty, leaving the Commonwealth to plan for contingencies in healthcare delivery and coverage. The gubernatorial candidates approaches on the issue differ: Spanberger has categorized the impact of the Big Beautiful Bill as “catastrophic,” arguing that it will threaten healthcare access and require Virginia to foot a significant bill due to the federal reductions; meanwhile, Earle-Sears has downplayed the impacts, arguing that the issues are overstated and that Virginia’s reserves could manage the increased costs spread out over various years.
The 2026 Regular Session of the Virginia General Assembly starts on January 14, 2026, and the first female governor in Virginia’s history will be sworn in on January 17. Key debates will likely center on minimum wage policy, the potential launch of a retail cannabis market, and changes to labor laws, all within the context of a tighter fiscal climate.
While Election Day is just around the corner, early voting is already underway. Below are some key dates to consider in the voting process:
For more details on registration, polling locations, and early voting, visit the Virginia Department of Elections Citizen Portal.
CANDIDATE Q&A – Virginia gubernatorial candidates Winsome Earle-Sears and Abigail Spanberger
By the Virginia Press Association and the Virginia Local News Project
By staff at the Cardinal News
‘Big, beautiful bill’ fallout: At forum, Spanberger and Earle-Sears clash over Medicaid
By Ben Paviour, Virginia Mercury
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Cozen O’Connor Public Strategies, an affiliate of the international law firm Cozen O’Connor, is a bipartisan government relations practice representing clients before the federal government and in cities and states throughout the country. With offices in Washington D.C., Richmond, Albany, New York City, Philadelphia, Harrisburg, Chicago, and Santa Monica, the firm’s public strategies professionals offer a full complement of government affairs services, including legislative and executive branch advocacy, policy analysis, assistance with government procurement and funding programs, and crisis management. Its client base spans multiple industries, including healthcare, transportation, hospitality, education, construction, energy, real estate, entertainment, financial services, and insurance.
Established in 1970, Cozen O’Connor has over 775 attorneys who help clients manage risk and make better business decisions. The firm counsels clients on their most sophisticated legal matters in all areas of the law, including litigation, corporate, and regulatory law. Representing a broad array of leading global corporations and middle-market companies, Cozen O’Connor serves its clients’ needs through 31 offices across two continents.
November 10, 2025
November 10, 2025
November 10, 2025
